Stake-holder Firms and the Reform of Local Public Finance in China

12 Pages Posted: 18 Feb 2021

See all articles by Ronald W. Anderson

Ronald W. Anderson

London School of Economics & Political Science - Department of Finance; Centre for Economic Policy Research (CEPR); Sun Yat-sen University (SYSU) - Xinhua College

Date Written: January 18, 2021

Abstract

Since 1978 China has developed strongly using a particular form of capitalism which has relied upon close relations between private enterprise and the state and the continuing presence of state-owned enterprise, both centrally and at local levels. This model has been criticised as being responsible for the rapid rise of debt since 2010 and the slow-down of growth more recently. Using examples taken from Guangdong Province in south China I illustrate the workings of this system and highlight the challenges to adapting it to support China's growth ambitions for the coming decades.

Keywords: state capitalism, debt overhang, infrastructure, local public finance, enterprise reform

JEL Classification: G3, H2, K4, P2

Suggested Citation

Anderson, Ronald W., Stake-holder Firms and the Reform of Local Public Finance in China (January 18, 2021). Available at SSRN: https://ssrn.com/abstract=3769227 or http://dx.doi.org/10.2139/ssrn.3769227

Ronald W. Anderson (Contact Author)

London School of Economics & Political Science - Department of Finance ( email )

Houghton Street
London WC2A 2AE
United Kingdom
+44 20 7955 6204 (Phone)
+44 20 7955 7420 (Fax)

HOME PAGE: http://personal.lse.ac.uk/ANDERSOR/

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Sun Yat-sen University (SYSU) - Xinhua College ( email )

China

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